Solar Answers → Incentives & Programs
Does Illinois Have a State Solar Tax Credit?
No. Illinois does not have a state solar income tax credit. Despite what several national solar sites claim, there is no Illinois credit worth 25% of system cost or capped at $10,000 — no such credit appears anywhere in Illinois tax law. What Illinois actually offers is different, and often more valuable: REC payments, a utility rebate, and a property-tax break.
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Is there an Illinois state solar tax credit?
No. Illinois has no state income tax credit for residential solar installations. The Illinois Department of Revenue publishes a complete list of every individual income tax credit the state offers — Schedule 1299-I — and no solar or photovoltaic credit appears on it, anywhere. This isn't a case of a credit being hard to find; it simply doesn't exist in Illinois tax law.
That doesn't mean Illinois solar owners get nothing from the state — they get a real, different set of benefits, covered below.
Where does the "25% up to $10,000" claim come from?
Several national solar content sites currently publish a specific, wrong claim: that Illinois offers a state income tax credit equal to 25% of system cost, capped at $10,000. It shows up worded slightly differently from site to site, but the number is consistently wrong. A few things seem to be behind the confusion:
- Mixing up state and federal. The only percentage-based solar credit that ever existed for Illinois homeowners was the federal credit — never a state one.
- Copied templates from other states. A few states do have real 25%-style solar credits. Illinois isn't one of them — see the comparison below.
- Confusing a property-tax rule with an income-tax credit. Illinois does have a genuine state-level solar tax benefit — it's just a property-tax rule, not an income tax credit.
- No bill actually creates it. No legislation in the current Illinois General Assembly proposes a residential solar income tax credit of this kind.
What does Illinois actually give solar owners instead?
Three real programs — none of them an income tax credit:
- Illinois Shines REC payments. For the 2026–27 program year, small systems earn $80.77 per REC in ComEd territory and $70.37 in Ameren territory, plus a $20/REC adder for customer-owned systems. Paid over time through your installer, not a line on your tax return. See the full 2026 incentive stack →
- The ComEd/Ameren $300/kW rebate. A one-time utility payment for installed solar capacity, separate from Illinois Shines. How the rebate works →
- The property-tax special assessment (35 ILCS 200/10-10). This is the real state-level solar tax benefit people often mean when they say "tax credit" — it keeps your solar system from raising your property tax assessment. You claim it by filing Form PTAX-330 with your county assessor.
Illinois has a genuinely strong incentive stack — REC payments, a utility rebate, net metering, and a property-tax break — it just isn't delivered as a state income tax credit. See the full 2026 incentive stack →
Isn't there a 30% solar tax credit?
There was — but it was federal, not Illinois. The federal Residential Clean Energy Credit (Section 25D) covered 30% of system cost, and it expired for systems placed in service after December 31, 2025. It was never an Illinois credit to begin with, and Illinois has nothing to fill the gap it left. The full federal breakdown →
What about a solar sales-tax exemption in Illinois?
There isn't one. Illinois has no statewide sales-tax exemption for residential solar equipment — standard Illinois sales tax applies. This is a separate false claim from the income-tax-credit myth, but it circulates for similar reasons.
What people think exists vs. what's real
Swipe the table sideways to see both columns →
| What some sites claim | The reality (verified) |
|---|---|
| "Illinois has a 25% state income tax credit" | No Illinois income tax credit for residential solar exists — it isn't on the Illinois Department of Revenue's list of individual credits. |
| "Capped at $10,000 per taxpayer" | No cap, because there's no credit — the $10,000 figure has no basis in Illinois law. |
| "Stacks with the federal credit" | The only percentage credit was federal (30%), and it expired after December 31, 2025. |
| "Illinois legislators are finalizing the credit" | No bill in the current General Assembly creates a residential solar income tax credit. |
| "Illinois exempts solar from sales tax" | No statewide residential solar sales-tax exemption exists; standard sales tax applies. |
| (Often missed) "Illinois gives a state solar tax break" | True — it's the property-tax special assessment (35 ILCS 200/10-10), not an income tax credit. |
Illinois State Solar Tax Credit FAQ
Does Illinois have a state solar tax credit?
No. Illinois has no residential solar income tax credit. It does not appear on the Illinois Department of Revenue's list of individual income tax credits.
What about the 25%, $10,000 credit I saw online?
That claim appears on several national solar sites but has no basis in Illinois law — there is no such credit, and no cap, because the credit doesn't exist.
Is there any pending Illinois bill to create a solar tax credit?
No residential solar income tax credit bill has been introduced in the current General Assembly.
Wasn't there a 30% solar tax credit?
Yes — but that was the federal credit (Section 25D), not an Illinois credit, and it expired for systems placed in service after December 31, 2025.
So is there no tax benefit for solar in Illinois?
There is one real state tax benefit: the property-tax special assessment (35 ILCS 200/10-10), which keeps solar from raising your property tax assessment. You claim it with Form PTAX-330.
If there's no credit, how do Illinois homeowners actually save?
Mainly through Illinois Shines REC payments, the ComEd/Ameren $300/kW rebate, net metering, and the property-tax assessment — none of which is an income tax credit.
How much do Illinois Shines RECs pay right now?
For the 2026–27 program year, base REC prices are $80.77 per REC in ComEd territory and $70.37 in Ameren territory for systems up to 10 kW, plus a $20/REC adder for customer-owned systems.
Does Illinois exempt solar from sales tax?
No. There is no statewide residential solar sales-tax exemption; standard Illinois sales tax applies to equipment.
Do other states have a 25% credit like people describe?
Yes — a few do, which is likely why the claim gets copied onto Illinois pages. New York's credit is 25% of qualified costs, capped at $5,000. South Carolina's is 25%, capped at $3,500 per year. Illinois has neither.
Where can I verify this myself?
The Illinois Department of Revenue lists every individual income tax credit on Schedule 1299-I; no solar credit is on it. The property-tax rule is at 35 ILCS 200/10-10 on the Illinois General Assembly's site.
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Free eligibility check · ComEd & Ameren · No obligationThe Day Company is an Illinois solar and battery information resource. We publish corrections like this one because getting the facts right is the whole point — we have no reason to keep readers confused about a credit that doesn't exist. Information you submit may be used by our review team and authorized partners to contact you about your request. Checking eligibility creates no obligation.
Sources
- Illinois Department of Revenue — Schedule 1299-I, Income Tax Credits
- Illinois Department of Revenue — Individual Income Tax Credits
- Illinois General Assembly — 35 ILCS 200/10-10, Special Assessment for Solar Energy Systems (ilga.gov)
- Illinois Power Agency — Illinois Shines Program Documents & REC Prices
- IRS — Residential Clean Energy Credit
Changelog: August 6, 2026 — v1 published.
How to cite: The Day Company Editorial Team, "Does Illinois Have a State Solar Tax Credit?," The Day Company, updated August 6, 2026. https://theday.company/answers/illinois-state-solar-tax-credit